US fund Valic has marked up the valuation of its Flipkart shares by 10 per cent to $108.04 each for the May-ended quarter, compared with $98.19 at the end of February.

US fund Valic has marked up the valuation of its Flipkart shares by 10 per cent to $108.04 each for the May-ended quarter, compared with $98.19 at the end of February.

BENGALURU: After facing a series of markdowns by investors, Flipkart is finally having some respite.

US fund Valic has marked up the valuation of its Flipkart shares by 10 per cent to $108.04 each for the May-ended quarter, compared with $98.19 at the end of February. Prior to this, Valic had marked down the value of its holdings in the Bengaluru-based ecommerce company for two consecutive quarters, by 20.2 per cent and 12 per cent. This markup by Valic values Flipkart around $11.55 billion, compared with $10.5 billion earlier. This, however, is still down from Flipkart’s peak valuation of $15.2 billion when it last raised capital in July 2015.

Flipkart didn’t respond until press time on Wednesday to an email seeking comment. Valic acquired Flipkart shares in 2013, when the etailer raised $360 million in two tranches.

Last month, another investor, Fidelity, had disclosed a marginal 3 per cent markup in the valuation of its Flipkart investment, after two consecutive markdowns earlier this year.

Flipkart had also faced markdowns from other investors like Morgan Stanley, T Rowe Price and Vanguard. In fact, markdowns are part of a now-controversial global trend, wherein funds have not spared even leading startups like ridehailing app Uber and house-rental startup Airbnb.

“(Markdowns are) a theoretical exercise by small investors. From our perspective, valuation is when we raise money,” Flipkart CEO Binny Bansal told ET in an earlier interview. Flipkart is currently battling out with Amazon to maintain its leadership position in India.